Soaring dairy exports drive NZ trade surplus in
December

The trade balance was a surplus
of $523 million in December, in line with expectations, from
a surplus of $183 million in November, and $535 million a
year earlier, according to Statistics New Zealand. The total
value of exports rose 16 percent to $4.76 billion in
December from a year earlier, underpinned by a 48 percent
gain in foreign sales of milk powder, butter and cheese to
$1.89 billion. Imports rose 19 percent to $4.24 billion.

The annual trade balance was a deficit of $259 million in
2013, narrowing the $1.16 billion shortfall in 2012. Annual
exports rose 4.4 percent to $48.09 billion, and imports
increased 2.9 percent to $48.35 billion.

High commodity
prices are one of the factors supporting New Zealand’s
strong economic momentum, with seemingly insatiable Chinese
demand for dairy products.

China became the country’s
biggest trading partner in 2013, toppling Australia in
November, taking annual exports of $9.96 billion compared to
$6.86 billion in 2012, and delivering imports of $8.26
billion, up from $7.71 billion a year earlier. Monthly
exports to China jumped 67 percent to $1.36 billion in
December.

Exports to Australia fell 8.3 percent to $778
million in December from a year earlier, while sales to the
US slipped 3.2 percent to $379 million.

Annual exports of
milk powder, butter and cheese climbed 176 percent to $13.41
billion, while casein and caseinates rose an annual 8.2
percent to $949 million. They account for about 30 percent
of the country’s total exports.

Meat and edible offal
exports rose 4 percent to $472 million for an annual lift of
2.2 percent to $5.28 billion. Logs, wood and wood articles
exports advanced 28 percent to $345 million for an annual
increase of 22 percent to $3.86 billion.

Exports of crude
oil, which were the fourth biggest commodity sold in 2012,
dropped 22 percent to $1.44 billion in 2013, making it the
sixth biggest commodity.

New Zealand imports of petroleum
and products fell 2.5 percent in 2013 to $8.13 billion,
while vehicles, parts and accessories rose 13 percent to
$5.83 billion. Mechanical machinery and equipment imports
were flat at $6.06 billion in the year.

The Wellington-based BusinessDesk team led by former Bloomberg Asian top editor Jonathan Underhill and Qantas Award-winning journalist and commentator Pattrick Smellie provides a daily news feed for a serious business audience.

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